CBN Governor Seeks Support For Islamic Financing

ABUJA – The Governor, Central Bank of Nigeria, Mr. Lamido Sanusi, says Islamic financial products have the capacity for ensuring financial inclusion of significant segment of the population.

CBN Governor Seeks Support For Islamic Financing

CBN Governor Seeks Support For Islamic Financing

Sanusi stated this in Abuja at the National Conference on Islamic Banking and Finance in Nigeria, organised by Shaikh Nasir Kabara Research Centre in Abuja.

He said that when properly harnessed, Islamic finance could contribute significantly in turning Nigeria into a major international financial centre.
“Islamic finance has shown its potential in achieving financial inclusion in many economies by bringing in large under bank populations, especially Muslims into the urbanised financial sector.

“ We have so far registered Jaiz bank, and we have given a licence to Stanbic IBTC Bank to operate some window.

“We have given an approval in principle to Sterling Bank to operate an Islamic window and a microfinance bank that has applied for Islamic banking licence.

“This is in addition to the work being done by National Insurance Commission to promote “Takaful”, an islamic insurance product,’’ he said.

Sanusi said that many Islamic financial markets had established their presence in all the major financial centres and were playing key roles in deepening the financial markets with products across the globe.

“In the face of the growing interconnectedness of the global financial system and its integration, it is thus unrealistic for any existing or aspiring financial centre to be oblivious of this development.

“Last week, I was at the 9th World Islamic Economic Forum in London hosted by the UK Government.

Prime Minister David Cameron announced his government’s plan to make London a capital for Islamic finance to the Western world.

He said it would stand alongside Dubai and Kuala Lumpur as one of the great capital of Islamic finance.

“The UK is embarking on this plan, despite the fact that it is a non-Islamic country.

“This illustrates what we have been saying; that Islamic finance, though based on Sharia, is a financial product with clear goals and is accessible to all,’’ he said.

The CBN boss noted that Islamic finance works effectively in attracting liquidity through the “Sukuk’’, a loan facility for infrastructure development, used currently to aid developing economies in building their much-needed infrastructure.

“It is in view of this potential that the Central Bank, in conjunction with other sister institutions, has assembled a technical team to explore this prospects of alternative modes of finance.

“The team has identified in its report potential projects that can be financed by sovereign and sub-sovereign Sukuk; the projects include upgrade, maintenance, repairs and new construction of roads and highways.

“They also include upgrade, renovation and construction of airports, rehabilitation of the rail line and the building of a new rail line and railway stations,’’ he said.

He said the would also provide part funding for the construction of the planned three refineries and mass housing, as well as light rail for some states in the federation.

The Chairman, Jaiz Bank, Dr Umaru Mutallab, said Islamic banking was growing rapidly and was expected to continue.

“ Islamic banking has evolved from being just a niche offering into being part of the mainstream financial service landscape.

“ In Nigeria, the CBN, NDIC, SEC, DMO and others have done a lot in setting up the required framework for the establishment of non-Interest Islamic Banking in Nigeria.

“ However, there is more to be done, especially in the area of Sharia-compliant liquidity management instruments,’’ he said.

He called on all stakeholders to expedite the process of creating a level-playing field for participants in the financial service sub- sector.

Reps summon CBN gov over Islamic banking, cashless economy policy

The House of Representatives, on Tuesday, summoned the governor of Central Bank of Nigeria (CBN), Mallam Sanusi Lamido Sanusi, to appear before it on Thursday to expatiate on the cashless  economy policy and the controversial Islamic banking introduced by the apex bank.

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The House resolution to summon the CBN governor was sequel to a motion moved by Honourable Aliyu Yakubu, Peoples Democratic Party (PDP) Yobe, questioning CBN’s policy on daily cash withdrawal limit of N150,000 for individuals and N1million for corporate customers.

Honourable Yakubu averred that the proposed policy of CBN to limit daily cash withdrawals from banks with effect from June 2012 would affect local farmers and traders who do not have banks in their localities, stressing that “some communities in the country have no commercial banks, micro finance banks or Automated Teller Machine, ATM.”

But the Speaker, Honourable Aminu Tambuwal, who presided over the plenary session, asked the former chairman of the House Committee on Banking and Currency, Honourable Ogbuefi Ozongbachi, to give the House a direction on the matter. Continue reading

Nigeria- Stanbic Wins Approval for Islamic Banking

Central Bank of Nigeria (CBN) Governor, Mallam Sanusi Lamido Sanusi yesterday said that Standard Bank of Nigeria has secured approval to set up an Islamic banking arm.

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Daily Champion recalled that the CBN governor had in the month of March 2011 said that he wanted to establish Nigeria as the African hub for Islamic banking and was working on a regulatory framework to emulate the success of the industry in Malaysia. Continue reading